The basic rule for collecting sales tax from online sales is: If your business has a physical presence, or “nexus”, in a state, you must collect applicable sales taxes from online customers in that state.
If you do not have a physical presence, you generally do not have to collect sales tax for online sales.
Do you need a sales tax license to sell online?
For most states, the general rule is that if you sell products or services that qualify for sales tax, a seller’s permit is a must. It allows you to collect sales tax from your end customers. It may also permit you to buy products from suppliers/manufacturers without paying sales tax on them.
What states require sales tax for online sales?
States that Tax Marketplace Sales
- South Dakota.
- South Carolina.
Do I need a sales tax permit to sell on Etsy?
In some states, you’re required to obtain a sales tax permit to collect state sales tax. You’ll usually need your taxpayer identification number such as a social security number or federal employer identification number (EIN) to register with a state or city to collect sales tax for your Etsy business.
Do I need a business license to sell online Texas?
The state of Texas does not have a general business license requirement. The state does have regulatory agencies, but there are different permits and licensing requirements depending on the type of business you have and the products and services that are being sold.